Short-Term Rentals

Taking Action

The Emergence of a Digital Economy

Online rental platforms operating in Canada, like Airbnb, do not currently collect or remit GST/HST, pay no corporate income tax to the Canadian government, and make it far too easy for those renting rooms on their platforms to do the same. This puts online rental platforms at an unfair advantage over other accommodation businesses, like hotels, who pay their taxes and play by the rules. And the real loss is felt by Canadians who end up paying more in taxes to cover the cost of our social programs.

 

What started as true home sharing has expanded into a growing trend: people using these platforms to become commercial operators. This means that multiple units or entire homes are being rented out on a consistent basis. Effectively, these operators are running illegal hotels within existing residential housing.

What this means for Canadians:

 

  • Lost tax revenues for governments and cities.
  • Digital businesses having an unfair tax advantage over established businesses who contribute to the economy and employ Canadians.
  • Guests are potentially at risk, as there may not be any health and safety standards or inspections in place, no insurance, or there may not be any personnel on site to handle issues.
  • Impacts to local communities as nuisance, disruption and crime are increasingly reported.
  • Affordable housing is lost, as Airbnb and similar platforms convert long-term rental units into short-term rentals. This has decreased the supply of affordable housing units, which has exacerbated an already acute housing shortage in many of Canada’s largest cities.

Join our Fight

It’s Time for Tax Fairness

The findings of our study have demonstrated that the hotel industry is competing on an uneven playing field. Commercial operators are running exactly the same kind of business as a hotel, but none of the rules and regulations apply to them. This includes taxation, health and safety standards, the requirement to obtain a business license, insurance, safety inspections, and accessibility requirements.

We have made progress in a number of jurisdictions. Watch our video to learn more.

To join our fight, send a letter to your Member of Parliament by visiting FairRules.ca.

Visit FairRules.ca
Wins so Far

Progress

As a result of the industry’s strong national presence and united message, we are seeing wins across Canada.

 

These wins include: 

  • New regulations on zoning and licensing in the Province of Quebec.
  • Limiting short-term rental accommodations to principal residences in:
    • Victoria, BC;
    • Vancouver, BC; and,
    • Toronto, ON.
  • Applying provincial or accommodation taxes in:
    • the Province of British Columbia;
    • Toronto, ON;
    • Ottawa, ON; and,
    • the Province of Quebec.